Chicken or egg I guess. It won’t be the last time I’m ever wrong.
Not exactly. Carvana buys cars and even now provides quotes on leased Volvos. So it’s unlikely they’d just stop buying Volvos unless Volvo stopped selling to 3rd parties. Just like VW, I think.
Carvana’s policy change to not work with certain lessors predates Volvo’s (unconfirmed) change. They decided not to work with NMAC a long time ago, for example, and other buyers still work with NMAC, AFAIK.
I wrote it in the Vroom thread, but i just confirmed with Vroom they are also not buying out Volvo leases… she said it was a very recent (weeks) change in policy.
The only way to find out for sure is to request dealer payoff directly from Volvo. Carvana is the middle man in this transaction.
I guess I’m just used to dealing with MB and BMW that have historically had artificially high RV that no one would ever pay. My buddies lease expired and instead of selling at FMV they wanted RV so the dealer took it back, certified it and sold it back to him for $10k under the RV. That’s a lot of hands in the cookie jar just for him to get the car back.
BMW no longer allows this. The dealer can not sell the vehicle to the original lessee for under the RV. On rare occasion, BMWFS will offer a reduced RV buy out option, but once it goes back to the dealer, the contracted RV is the best you’re going to get.
Seismic changes to the used car market in last 12 months. The banks are very slow, but they always catch up to the market eventually.
Any intelligent person could have realized the “Carvana boom” was not sustainable long term. But it sure was great while it lasted.
I’m not sure the boom is really over. All these people complaining about 3rd party buyouts can still buyout the vehicle themselves and then sell it to Carvana. The 3rd party buyout had the benefit of saving you same sales tax along the way, but with the crazy offers Carvana is making again, paying some sales tax isn’t going to sink positive equity.
Apparently a second boom is happening?
Aside from sales tax, the time lag on acquiring title is the biggest downside of purchasing a leased car with the intent to resell it because the boom could be over by then.
Aside from the lessors that refuse to sell to anyone, I’d recommend finding a different buyer if Carvana refuses to works with a lessor solely due to their own internal policy.
Selling my 18’ Highlander with 8 payments left, for $2,000 equity. Only hiccup was Carvana needed TFS lease payoff statement to be faxed. Scheduled for pick up this Friday.
I got a new email from Carvana today;
It’s official! We’re seeing increased demand in the pre-owned car market since your last offer, and we’re increasing our offers on many vehicles to match. Consider selling your 2020 Dodge Challenger— we may be able to offer you more for it now.
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I leased a Hyundai at the weekend and carvana offered 9k over buyout. They offered 8k more than vroom. So, I have one week till the offer expires. Can I sell this soon? On temporary tags? And before HMF gets the title?
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I don’t think the tags matter. And let them worry about title. But: You’d have to ask HMF whether they’d sell it rn and for how much to a third party.
Carvana doesn’t care about the tags. I talked to HMF today and there is no tie in period and they don’t care about the title, so from HMF’s side I can trade the car in anywhere now. The carvana offer is good till next Thursday so I’m going to drive the car for a week and then start the trade in process. Hopefully carvana won’t balk at the fact that HMF doesn’t have the Title yet, assuming it takes PA a month or more to get it to them.
If you really have that much equity, jump on it. Don’t wait. You never know when someone might realize they over-valued it.
Don’t overthink it…take the $$$ and run.
I recently purchased a beautiful Volvo XC70 T6 Platinum with 28K miles for 24K on Autotrader (Sept. 2020). It was a private party sale, and I negotiated the price down from 25K. So, 5 months later, with my back not agreeing with the seats too well (I know, I must be the only one), I decided to check on Carvana to see what it was worth (mid-Feb).
Lo and behold, they sent back a price of 30,754. Shocked, I thought about it for a few days, test drove some potential replacements, and even a Volvo dealer, who loves XC70s, told me to take the money. So, I re-did the request (this time saying I did have a lien on the car), and the buyout came back at $31,203!!! The car now had 34,200 miles. Ummm, yeah, I’ll take an 8,944 check, please!
The process was super easy, and they came a week later to pick it up (I gave myself some time to look for something else). And, guess what? My car was listed at 27,990 and sold within a few days. Not sure what sort of business plan that is, but it’s not your problem!
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How in the world a 5 (at best) years old and 30k miles XC70 can be worth so much? Even when you bought it for $24K.
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Well, I don’t know either, but out of all of Volvo’s cars over the past 2 decades or so, the XC70 is the one that holds its value the best. It’s also the one that a lot of people think is Volvo’s last traditional wagon.
This particular one had low miles, every option except booster seats and parking sensors, and the T6 with the 2015.5 interior update…but it’s still cRaZy! I told my wife to never expect this again, ever.
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